Financial Market Analysis Can Go Mad (in the Search for Irrational Behaviour During the South Sea Bubble)

Gary Stephen Shea

    Research output: Contribution to journalArticlepeer-review

    21 Citations (Scopus)

    Abstract

    An investigation into the legal and political history of South Sea Company subscription finance shows that the subscription contracts had default options built into them, as was typically the case in eighteenth-century subscription financing. Company records and contemporary pamphlet literature show that people understood the subscription finance mechanics that were stated in law. A fair presentation of South Sea share value data also supports this view. We thus conclude that the analyses published in this journal by Dale, Johnson, and Tang were irretrievably flawed and present a substantially incorrect history of the markets for South Sea shares.

    Original languageEnglish
    Pages (from-to)742-765
    Number of pages24
    JournalEconomic History Review
    Volume60
    Issue number4
    DOIs
    Publication statusPublished - Nov 2007

    Fingerprint

    Dive into the research topics of 'Financial Market Analysis Can Go Mad (in the Search for Irrational Behaviour During the South Sea Bubble)'. Together they form a unique fingerprint.

    Cite this